1. Revenue Recognition

Data: Apple Inc. sells iPhones and recognizes revenue at the point of sale. During the year, Apple sold 10,000 iPhones at $1,000 each. It offers a 1-year warranty for free repairs and replacements.

Requirements:

1. Calculate Apple Inc.'s revenue from iPhone sales.
2. Discuss how Apple Inc. accounts for the warranty under the revenue recognition principle.
3. Analyze the impact of revenue recognition policies on Apple Inc.'s financial statements.
4. Evaluate the ethical considerations in revenue recognition practices at Apple Inc.
5. Recommend improvements to Apple Inc.'s revenue recognition process.